Uber has unveiled plans to expand its global food delivery business with a $14.8bn (£10.7bn) takeover of German firm Delivery Hero, marking one of the largest deals in the sector's history. The acquisition values Delivery Hero at approximately €41.50 per share and will see Uber pay $13.7bn after accounting for its existing stake in the company.
The deal brings together Uber Eats with Delivery Hero's extensive portfolio of brands, including Asia's foodpanda, Latin America's PedidosYa, and talabat in the Middle East, combining to handle a substantial $236bn in orders annually. Upon completion, Uber expects to operate its dual taxi and food delivery services in 58 markets, significantly increasing its global footprint from the current 34.
Notably, customers using both Uber's ride-hailing and food delivery services tend to spend three times more on its platform, highlighting the strategic benefit of this integration. To address potential competition concerns, Uber will not acquire Delivery Hero's operations in 14 countries where it already has a strong presence, with these assets instead being sold to New York-based private equity firm SSW Partners for $1.6bn.
The rapidly growing food delivery sector has experienced significant consolidation, with recent deals including DoorDash's acquisition of Deliveroo for £2.9bn and Prosus's purchase of Just Eat Takeaway for €4bn (£3.4bn). The post-pandemic period has seen companies focus on achieving greater scale to manage operating costs, leading to a wave of mergers and acquisitions.
Delivery Hero's board and executives have endorsed the takeover, recommending it to shareholders, while major investor Prosus will sell its 17% shareholding in Delivery Hero to Uber. The company has committed to maintaining Delivery Hero's headquarters in Berlin and workforce until at least 2029, alongside a pledge to invest €2bn in Germany over the next five years.
The acquisition is expected to be finalised in the second half of 2027, subject to customary regulatory approvals. With this deal, Uber solidifies its position as a leader in the global food delivery market and sets the stage for further expansion and growth in the sector.